Let’s be honest, most business owners don’t make admin and keeping their books up to date a priority. There always seems to be a more important task and to some extent, that might be true as it just doesn’t bring in cash. But there are some important benefits to keeping your accounting records updated at all times.
If you’re someone who tends to put off your accounting, here are a few reasons why it pays to keep your accounting records up to date.
You’ll know if your business is profitable if your accounting records are up to date
The more profit you can make in your business, the better. Not only does it mean more money in your pocket, but it enables you to also invest in yourself and your business growth. But if you don’t know if your business is profitable, you’re not going to know if you’re spending more than you’re getting – and heading into financial troubles.
Money isn’t getting left on the table
When your accounting records aren’t up to date, you’ll not know if you’re leaving money on the table. There could be refunds that you haven’t received, that need chasing up. There may also be overdue client invoices that need reminders sent out.
It’s clear whether you’re in a position to make investments
If you want to invest in your business or your training, you need to know you have the funds to cover it. Whether you’re looking at training, mentoring or investing in software or equipment for your business, the last thing you want, is to find yourself up against a limited-time price reduction and the need to update your accounts, just to see if you can afford to buy!
You can forecast revenue if your accounting records are up to date
You can’t accurately forecast revenue if your figures aren’t up to date. And forecasting revenue is so important to your business. When you have accurate accounting record figures you can predict when you’ll need to invest in extra help and you’ll be able to see when busy periods are typically on the horizon. You’ll also be able to plan for your tax and foresee if you need to up your game, to reach your financial targets.
If your accounting records are up to day, expenses can be easily managed
When you have up to date accounting records, you can quickly cut back on unnecessary costs and see what recurring costs you’re paying, if needed. This is especially useful when we’re in a period of uncertainty, such as a threat of recession or a country-wide lockdown.
The list goes on and on and if that hasn’t motivated you to move regular bookkeeping up your to-do list, then it might be time to consider outsourcing the financial admin. Not only will that take the dreaded task of updating your accounting records from your long list of to-dos, but you will also reap the benefits of always knowing where you are at in your business and what you need to do to achieve your goals. So if you’re curious as to how I can help you with your financial admin, get in touch and let’s talk.